Approving a spot bitcoin (BTC) exchange-traded fund (ETF) would be like giving the U.S. government and its securities commission a “seal of approval” for bitcoin, says Mike Novogratz.
In a July 12 interview with Bloomberg TV, the founder of crypto investment firm Galaxy Digital discussed the numerous spot bitcoin ETF filings with the Securities and Exchange Commission (SEC), including one from $10 trillion money manager BlackRock .
“What I think is BlackRock, Invesco [and] “The group of ETF providers is a real signal that adoption is imminent,” Novogratz said.
He added that many are “nervous” when it comes to investing in cryptocurrencies and that for most, approving a spot bitcoin ETF is an “easy first step” to start investing in the asset.
“I just think if it happens, it’s the seal of approval from the SEC and the US government.”
Novogratz explained that there is a “huge infrastructure” for the ETFs. In addition to BlackRock, proposed ETFs from Valkyrie, Invesco, VanEck, WisdomTree, Fidelity and a joint fund from ARK Invest and 21Shares are also pending approval. Novogratz reckons many of these will likely be approved.
“The SEC isn’t going to approve any, so you’re going to have these huge sales forces out there giving access to people who didn’t have access before.”
SEC Chairman Gary Gensler has previously claimed that “anything but Bitcoin” falls under his agency’s purview and that other crypto projects are “securities” as there are typically well-known developers and profits are expected based on their work.
Related: Don’t be naive – BlackRock’s ETF will not be bullish on Bitcoin
Novogratz was evasive when asked if Galaxy and Invesco’s top-tier Bitcoin ETF could go public before the end of the year.
“This SEC has been really adamant and very tough on crypto,” he said.
“No one of significance survived the listing process. We are in this process and it has been a long and frustrating journey. I’ll leave it at that,” he added.
“I think we’re probably going to need either a change of heart at the SEC or a change in government to see any real progress in crypto regulation here in the US.”
Novogratz predicted that bitcoin price will end the year on a high. “If you take the top out, we’ve got a nice lead,” he said.
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